Amid the discussion of workshop labour rates and technician remuneration, mechanic.com.au member Brad McGrath from McGraths Automotive has put together a Workshop Charge Rate Calculator to help assist other workshop owners understanding their numbers.
By simply entering the following values, the calucaltor will work out a number of useful figures to assist you in understanding your budget and targets.
From the example shown above, we can see that if we are paying our technician a base rate of $36 per hour, with more than 3 hours overtime per week and 4 weeks of annual leave, our workshop charge-out rate needs to be approximately $150 aswell as a host of other handy figures.
Try it for yourself by downloading the Workshop Charge Rate Calculator below
Workshop Charge Rate Calculator
Important Notes
This calculator makes a number of assumptions about your business and is intended only as a guide. There is no subsitute for a creating a proper budget for your business.
One of the assumptions are the businesses overheads, as such only cost of employment is shown, however all overheads are estimated in the charge rate calculation.
The calculator also assumes productivity of 80%.
Workshops with multiple Techs/apprentices should make this calculation for each staff member and average the results.
